LinkedIn is hoping to cash in on white hot demand for technology and is aiming for a listing that would give it a market valuation of more than $3bn (£1.8bn).
Management at the firm will become overnight multi-millionaires if the share sale is successful.
LinkedIn yesterday unveiled its price range of between $32 to $35 a share. The company earned $15.4m in 2010 on revenues of $243m, meaning it trades on almost 13 times its 2010 revenues.
The demand for shares in dotcom firms has pushed the value of Facebook to more than $60bn, with some valuations coming in even higher. Twitter, Groupon and Zynga have also generated significant interest and are seeing multi-billion dollar valuations of their shares trading on the secondary markets.
Last week, Renren, one of the biggest social networking sites in China, made its trading debut after a successful IPO. Its stock surged 28.6 per cent in its first day. Valued at $6.7bn it trades at an eye-watering 90 times last year’s sales.
LinkedIn makes money by selling members premium subscription services and offering businesses marketing solutions.